A new report, "On the positive economic impacts of port infrastructure development and seaborne trade efficiencies in Sub-Saharan Africa: the case of Senegal", has been published, examining the potential benefits of improving port infrastructure in Sub-Saharan Africa. The report focuses on Senegal as a case study, highlighting how inefficient port infrastructure hinders the region's economic progress, and demonstrating how upgrades to port infrastructure can increase trade efficiency, stimulate economic growth, and improve food security, ultimately leading to significant reductions in poverty and improvements in overall welfare.
Title: On the positive economic impacts of port infrastructure development and seaborne trade efficiencies in Sub-Saharan Africa: the case of Senegal
URL: https://dx.doi.org/10.1057/s41278-024-00293-1
Year: 2025
Authors: Sahoo, A; Nechifor, V; Ferrari, E; Ferreira, V; Amany, DSD
Journal: Maritime Economics & Logistics
Abstract: Inefficient port infrastructures is one of the challenges facing Sub-Saharan Africa, particularly as regards the West African region’s economic progress. Using a dynamic computable general equilibrium model, the paper examines how improving port infrastructure in Senegal can increase the potential of seaborne trade, and accelerate economic and social development in the country and the wider region. Despite Senegal's strategic location along the Trans-Saharan trade route in West Africa, infrastructural limitations pose challenges to port capacity. Our findings suggest that improving port infrastructure can increase port productivity, leading to a reduction in costs of imported food products and domestic inputs. As a result, the country's competitiveness in international markets would be enhanced and could stimulate the production of cash crops, industrial food, and chemical products. This would lead to increased food supply and improved purchasing power, supporting the country's food security. Results show that increased efficiencies in maritime exports and imports lead to an overall increase in economic activity, resulting in significant GDP growth, improved welfare, and a reduction in poverty incidence. This growth can be attributed to higher exports and greater availability of imported intermediate inputs at lower prices, making exports more competitive in the global market as export prices decrease.
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